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Tesla stock sale nets Abu Dhabi $113 million

Abu Dhabi National Energy (TAQA), which is majority owned by the emirate, netted $113 million from selling its seven percent stake in Tesla Motors recently, Arab News reports.

Abu Dhabi, which gets most of its wealth from oil, doubled its investment in the Bay Area-based electric-vehicle maker. TAQA gained the shares in late 2010 when they were transferred from the Abu Dhabi Water and Electricity Authority. TAQA said it planned to reinvest the proceeds in Middle East energy-production opportunities.

Tesla shares are up 16 percent so far in 2012 and have jumped 25 percent in the past 12 months. Earlier this year, the company forecast that it would triple its 2011 sales in 2012 and would sell 5,000 Model S sedans. The new car goes on sale this summer. Tesla recently said it was "almost ready" to deliver the Model S, which starts at $57,400 before government incentives.

Abu Dhabi, through its Aabar Investments, is the largest shareholder in Mercedes-Benz parent Daimler AG, according to Arab News.

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It's interesting that the usual anti-middle eastern, oil money conspiracy theorists, are silent when it comes to investments in Tesla. Like all investors, middle eastern fund managers, seek out performing stocks and manage speculative investment portfolio's. There's nothing sinister in this activity, nor do they care much about the nature of the companies products. Like all investment bankers, the decision to invest is based purely on the likelihood of return from an increase in the companies stock price. Unlike PRC companies, middle-eastern countries are seldom seeking IP, just profit. TAQA, is not a long term investor. Speculation about this stock sale affecting Tesla's viability is unwarranted. Tesla is entering a fairly unsettled phase as it moves from the atmosphere of an IT stock, to that of a conventional manufacturer. Industrial stocks are far less volatile, and are determined on a ratio of assets+capital+ earnings+dividend. IT stocks are more speculative, because although the risks are high, the profits can be potentially enormous. Tesla is becoming an 'Industrial'. The Automotive industry is a very low profit, high risk, capital intensive industry. this should depress the stock value, but Elon Musk is an amazing businessman. His grasp of the process of industrial organisation and infrastructure has so far been brilliantly flawless. He is Tesla's great asset. However, this could be Tesla's weakness. The success or failure of Tesla, is relies upon the heartbeat of one man. Like all corporations dominated by one personality, investors are betting on one mans abilities. All the employees working in News Ltd's "quality' newspapers, rely for their careers on the heartbeat of the elderly Rupert Murdoch. When Rupert dies, those loss making newspapers, die with him. Many ABG readers, see Tesla as a moral crusade, and cheer for Tesla unrealistically. Tesla is a business, and must survive by generating profit, not moral vindication. EV supporters point to Apple, and say Tesla will enjoy the same success, but the comparison is an illusion. Tesla's best hope lies with it's OEM JVC's and strategic alliances.

It's major partners are Toyota, Daimler, and Panasonic. Not bad. It's second product will hit the streets in just a couple months and then we will see if their product lives up to the promises Tesla/Musk has said about it. The next three months are going to be huge for Elon Musk: he launches his rocket on April 30th and soon after launches the Model S. Talk about stress.

Well, it is the Abu Dhabi electric company, not the oil production company. Not at all surprising that an electric utility company, even one based in an OPEC nation, would be interested in promoting plug-in cars

A firm in the Middle East owning a large chunk of Daimler & Tesla? Goes to show that money & profits is now totally global & has no politic, religion or nationality. These guys are out to make a buck, just like anybody else. Likewise, I believe that the reason there is so much EV foot dragging from automakers is because EVs are not yet huge money makers. If Tesla and/or Nissan/Renault succeeds, all the established automakers will be ready to dive in. I don't really think they would care about oil or ICE engine if they could make more money on some other technology.

There is probably many petrol resellers that have invesments in car compagnies. That's why almost no car manufacturers are offering natural gas operation for their car, they prefer selling gasoline instead because oil is more costly and profitable. In the oil fields and in the tar sand oil fiels they flare away the natural gas. there is also many nat gas project that are halted because of the lack of demand.

From a news article: TAQA said it had sold the 7.3 million shares transferred to it by the Abu Dhabi Water and Electricity Authority (ADWEA) in December 2010. "While TAQA respects and has admiration for Tesla's vision, technology and products, Tesla was a non-core investment for TAQA that was originally made by ADWEA and transferred to us. We hope to use the profit to pursue energy opportunities in the MENA (Middle East North Africa) region," said a TAQA spokesman.

Hmmm selling stock, right before the Model S starts rolling off the production line? Do they know something we don't? Like a Tesla press release saying: "I'm sorry, were not gonna make it this year" Low build quality? Lack of reservations? Lower than promised range? If the Model S is as good a Musk has been saying, and the car press is raving about it, those shares can easily rise by tens of % before autumn. Remember, nobody outside Tesla has ever driven one and much depends on the official EPA rating.

Anne has a point. Everybody knows that big investors and insiders have access to info, sometimes 1+ month before its published, that us "small people" don't. There's no way to know whether this is anything like it, we'll have to wait and see. Fingers crossed for Tesla.

I was astonished that the Roadster was as competently built and did as well as it did. My fingers are crossed for the Tesla, but the odds against them shouldn't be underestimated. Breaking into the car industry is tough, as is leading in a new technology.